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The Centralized Economy, from Macroeconomic Theory: A Dynamic General Equilibrium Approach

In: Macroeconomic Theory: A Dynamic General Equilibrium Approach


  • Michael Wickens

    (University of York)


Macroeconomic Theory is the most up-to-date graduate-level macroeconomics textbook available today. This book truly offers something new by emphasizing the general equilibrium character of macroeconomics to explain effects across the whole economy, not just part. It is also the perfect resource for economists who need to brush up on the latest developments. Michael Wickens lays out the core ideas of modern macroeconomics and its links with finance. He presents the simplest general equilibrium macroeconomic model for a closed economy, and then gradually develops a comprehensive model of the open economy. Every important topic is covered, including growth, business cycles, fiscal policy, taxation and debt finance, current account sustainability, exchange-rate determination, and an up-to-date account of monetary policy through inflation targeting. Wickens addresses the interrelationships between macroeconomics and modern finance and shows how they affect stock, bond, and foreign-exchange markets. While the mathematics needed for this book is rigorous, the author describes fundamental concepts in a way that helps make the book self-contained and easy to use. Accessible, comprehensive, and wide-ranging, Macroeconomic Theory will become the standard text for students and is ideal for economists, particularly those in government, central and commercial banking, and financial investment.

Suggested Citation

  • Michael Wickens, 2008. "The Centralized Economy, from Macroeconomic Theory: A Dynamic General Equilibrium Approach," Introductory Chapters,in: Macroeconomic Theory: A Dynamic General Equilibrium Approach Princeton University Press.
  • Handle: RePEc:pup:chapts:8595-2

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    Cited by:

    1. Juin-Jen Chang & Jhy-Hwa Chen & Jhy-Yuan Shieh & Ching-Chong Lai, 2009. "Optimal Tax Policy, Market Imperfections, and Environmental Externalities in a Dynamic Optimizing Macro Model," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 11(4), pages 623-651, August.
    2. repec:nea:journl:y:2017i:35:p:53-69 is not listed on IDEAS
    3. Shafik Hebous, 2011. "The Effects Of Discretionary Fiscal Policy On Macroeconomic Aggregates: A Reappraisal," Journal of Economic Surveys, Wiley Blackwell, vol. 25(4), pages 674-707, September.
    4. Filip Premik & Ewa Stanisławska, 2017. "The Impact of Inflation Expectations on Polish Consumers’ Spending and Saving," Eastern European Economics, Taylor & Francis Journals, vol. 55(1), pages 3-28, January.
    5. Pesenti, Amos, 2016. "The meaning of monetary stability," FSES Working Papers 475, Faculty of Economics and Social Sciences, University of Freiburg/Fribourg Switzerland.
    6. George Economides & Anastasios Xepapadeas, 2018. "Monetary Policy under Climate Change," CESifo Working Paper Series 7021, CESifo Group Munich.
    7. Luis Eduardo Arango & Nataly Obando & Carlos Esteban Posada, 2011. "Los salarios reales a lo largo del ciclo económico en Colombia," Borradores de Economia 666, Banco de la Republica de Colombia.
    8. Pedro Garcia Duarte, 2015. "From real business cycle and new Keynesian to DSGE Macroeconomics: facts and models in the emergence of a consensus," Working Papers, Department of Economics 2015_05, University of São Paulo (FEA-USP).
    9. Drobyshevsky Sergey & Bozhechkova Alexandra & Trunin Pavel & Sinelnikova-Muryleva Elena, 2017. "The Effect of Interest Rates on Economic Growth," Working Papers wpaper-2017-300, Gaidar Institute for Economic Policy, revised 2017.
    10. Matthew Canzoneri & Robert Cumby, 2008. " Macroeconomic Implications of a Key Currency," CDMA Conference Paper Series 0807, Centre for Dynamic Macroeconomic Analysis.
    11. Fabio Petri, 2017. "The Passage of Time, Capital, and Investment in Traditional and in Recent Neoclassical Value Theory," Department of Economics University of Siena 750, Department of Economics, University of Siena.
    12. Sergey Ivashchenko, 2014. "Forecasting in a Non-Linear DSGE Model," EUSP Department of Economics Working Paper Series Ec-02/14, European University at St. Petersburg, Department of Economics.
    13. repec:bla:metroe:v:68:y:2017:i:4:p:625-659 is not listed on IDEAS
    14. Gerlach, Stefan, 2009. "The risk of deflation," IMFS Working Paper Series 21, Goethe University Frankfurt, Institute for Monetary and Financial Stability (IMFS).
    15. Samih Antoine Azar, 2012. "On the specification of the asset evolution equation in consumption models," Applied Economics Letters, Taylor & Francis Journals, vol. 19(2), pages 113-116, February.
    16. J.E. King, 2011. "Four Theses on the Global Financial Crisis," Chapters,in: The Global Financial Crisis, chapter 7 Edward Elgar Publishing.
    17. Fabio Petri, 2015. "Neglected Implications of Neoclassical Capital-Labour Substitution for Investment Theory: Another Criticism of Say's Law," Review of Political Economy, Taylor & Francis Journals, vol. 27(3), pages 308-340, July.
    18. Andrew Blake & Garreth Rule & Ole Rummel, 2015. "Inflation targeting and term premia estimates for Latin America," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 24(1), pages 1-21, December.

    More about this item


    macroeconomics; theory; general equilibrium; growth; business cycles; fiscal policy; taxation; debt finance; monetary policy; inflation targeting;

    JEL classification:

    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General


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